Supreme Court Upholds Mandate as Tax for Affordable Care Act

The justices did make some changes to the Medicaid portion of the law: The court held that the provision is constitutional as long as states would lose only new funds if they didn’t comply with the new requirements, rather than all of their funding.

The court said Congress was acting within its powers under the Constitution when it required most Americans to carry health insurance or pay a penalty. Of note: the individual mandate was not settled on Commerce Clause grounds; five justices agreed that the penalty for refusing to buy health insurances qualifies as a tax.